((HT: Arizona Republic/Craig Harris))A judge handling the Coyotes bankruptcy case could decide in two weeks whether the financially beleaguered team stays in the desert or moves.
U.S. Bankruptcy Judge Redfield Baum on Wednesday put on a fast track a decision whether the highest bidder could relocate the team. A hearing will occur June 9, and the judge said he would rule shortly thereafter. A hearing on the issue previously wasn't scheduled until June 22.
Saying he wanted to deal with the "10,000-pound elephant in the room," the judge said it was beneficial to all sides to quickly determine whether the team could relocate.
The Coyotes sought Chapter 11 bankruptcy protection May 5, and as part of a reorganization plan owner Jerry Moyes agreed to sell the team to Canadian billionaire Jim Balsillie for $212.5 million. The deal, however, is contingent on Balsillie moving the team to Hamilton, Ontario. No other bidder has officially made an offer for the team.
The Coyotes sought Chapter 11 bankruptcy protection May 5, and as part of a reorganization plan owner Jerry Moyes agreed to sell the team to Canadian billionaire Jim Balsillie for $212.5 million. The deal, however, is contingent on Balsillie moving the team to Hamilton, Ontario. No other bidder has officially made an offer for the team.
The National Hockey League and city of Glendale, where the team plays, have vigorously opposed the sale. The NHL says it alone can approve who owns a team and where a franchise plays. Glendale, which spent $180 million on Jobing.com Arena, contends it has a valid lease that obligates the Coyotes to play there for 26 more years.
The Coyotes, who have lost more than $20 million a season and never have made a profit in Arizona, say because the team is bankrupt it's up to a judge to decide what's in the best interest of creditors and that should supersede the league's authority and the lease with Glendale.
If the judge rules in the favor of the Coyotes, it would set a precedent in professional sports, where leagues for the most part have long controlled who can own teams and where they play.
Major League Baseball, the NBA and NFL all have filed briefs in support of the NHL's position.
The NHL said if the Coyotes win, it would appeal the ruling to the 9th U.S. Circuit Court of Appeals.
Major League Baseball, the NBA and NFL all have filed briefs in support of the NHL's position.
The NHL said if the Coyotes win, it would appeal the ruling to the 9th U.S. Circuit Court of Appeals.
The judge also set June 22 as the sale auction should the Coyotes win. If the NHL wins, an auction for the team is set for September 10.
Waldie and Shoalts have the details from the Globe and Mail as well...
The biggest issue they address is the idea of Jerry Moyes running the Coyotes in the interim...
Judge Baum announced that three executives of the current ownership group, led by Jerry Moyes, will run the team on a day-to-day basis. Moyes's group and the National Hockey League will also appoint one person as a “point person” who will review the finances on a weekly basis. If the two point persons can't agree on something, either one can bring the issue to court.
The ruling is on an interim basis only and the judge will continue to hear arguments about who controls the club.
The NHL has argued Moyes turned over control last fall in return for financing. Moyes has argued the league was only giving voting control over some issues and that his group retained day to day authority.
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